[CANSLIM] STST

From: Ian <ianstm@shaw.ca>
Subject: [CANSLIM] STST
Date: Fri, 08 Nov 2002 08:12:34 -0800
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Hi all:

I can't even remember the last time I proposed a stock to the group ... but here goes:

STST is a Nasdaq Small Cap stock, with an ADV of just 7000 shares, trading at $9.30 right now. I do not know their EPS/RS numbers as IBD doesn't seem to print them anymore for the Small Caps.

The company is Sensytech (STST - Nasdaq Small Cap). They are a defense contractor that manufactures passive surveillance systems - early warning systems, airborne imaging systems, communications reconnaissance systems, shipboard support systems etc... The current interest/growth in homeland security seems to bode well for Sensytech, as their backlog has increased a whopping 635% through the first 9 months of the year.

For their June Q this year, they made $0.16 per share on revenue of $9,000,000 (compared to $0.08 per share on revenue of $4.1 million a year earlier).

They currently only have about 4,000,000 shares outstanding, but they did file a share registration in late August to issue a secondary of 2,000,000 shares. I do not know the status of this, and realize that it is definitely a 'question mark' on the stock right now.

With this week's Republican victory in the House and Senate, I've got to figure that these 'under the radar' defense/security stocks have a big chance of becoming insitutional darlings over the next 2 years, as their revenues and earnings ramp. I have no idea what the current institutional interest in STST is though.

The chart is very interesting to me right now. They have been flat-lining for many months now, with $9.25 as a 4-month resistance level, and with $10.46 as the 52-week high. There have been 3 days in the past week (including the last 2 days), where ADV is much higher than normal (around 20,000) - so there has definitely been some accumulation going on. There is resistance here at the $9.25-$9.30 level, again at $10, and at the high of $10.50.

I suspect they will report Q3 earnings next week.

For those with a tolerance/taste for "illiquid CANSLIM", STST is one to watch for a significant, sustained increase in ADV, and a penetration through support levels.


Cheers,

Ian

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<DIV><FONT size=2>Hi all:</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV><FONT size=2>I can't even remember the last time I proposed a stock to the 
group ... but here goes:</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV><FONT size=2>
<DIV><FONT size=2>STST&nbsp;is a Nasdaq Small Cap stock, with an ADV of just 
7000 shares, trading at $9.30 right now. I&nbsp;do not know their EPS/RS numbers 
as IBD doesn't seem to print them anymore for the Small 
Caps.</FONT></DIV></FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV><FONT size=2>The company is Sensytech (STST - Nasdaq Small Cap). They are a 
defense contractor that manufactures passive surveillance systems - early 
warning systems, airborne imaging systems, communications reconnaissance 
systems, shipboard support systems etc... The current interest/growth in 
homeland security seems to bode well for Sensytech, as their backlog has 
increased a whopping 635% through the first 9 months of the year.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV><FONT size=2>For their June Q this year, they&nbsp;made $0.16 per share on 
revenue of $9,000,000&nbsp;(compared to $0.08 per share on revenue of $4.1 
million a year earlier).</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV><FONT size=2>They currently only have about 4,000,000 shares outstanding, 
but they did file a share registration in late August to issue a secondary of 
2,000,000 shares. I do not know the status of this, and realize that it is 
definitely a 'question mark' on the stock right now.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV><FONT size=2>With this week's Republican victory in the House and Senate, 
I've got to figure that these 'under the radar' defense/security stocks have a 
big chance of becoming insitutional darlings over the next 2 years, as their 
revenues and earnings ramp. I have no idea what the current institutional 
interest in STST is though.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV><FONT size=2>The chart is very interesting to me right now. They have been 
flat-lining for many months now, with $9.25 as a 4-month resistance level, and 
with $10.46 as the 52-week high. There have been 3 days in the past week 
(including the last 2 days), where ADV is much higher than normal (around 
20,000) - so there has definitely been some accumulation going on. There is 
resistance here at the $9.25-$9.30 level, again at $10, and at the high of 
$10.50.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV><FONT size=2>I suspect they will report Q3 earnings next week.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV><FONT size=2>For those with a tolerance/taste for "illiquid CANSLIM", STST 
is one to watch for a significant, sustained increase in ADV, and a penetration 
through support levels.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV>&nbsp;</DIV>
<DIV><FONT size=2>Cheers,</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV><FONT size=2>Ian</FONT></DIV></BODY></HTML>

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